press release
Dec. 19, 2013, 3:53 p.m. EST
Focus Graphite Signs Offtake Agreement for Lac Knife's Future
Graphite Production
OTTAWA, ONTARIO, Dec 19, 2013 (Marketwired via COMTEX) --
Focus Graphite Inc.
CA:FMS
-1.85%
(otcqx:FCSMF)(frankfurt:FKC) (the "Company") announced today it has entered into an offtake
agreement for the future production from Lac Knife's graphite
resource located 27 km southwest of Fermont, Quebec.
The strategic agreement for up to 40,000 tonnes per year of graphite
concentrate and value added products was signed on December 19, 2013
by the Company with an industrial conglomerate, comprised of heavy
industry, manufacturing and technology companies located Dalian City,
Liaoning Province, China.
The 10-year agreement calls for the supply of up to 40,000 tpy of
large, medium and fine flake graphite concentrate and value added
graphite products from Focus Graphite's proposed Lac Knife, Quebec
mining and processing facility.
The specific terms of the agreement, including pricing and renewal
rights, are confidential for competitive reasons.
"On behalf of Focus Graphite we are extremely pleased to have
completed our first offtake agreement. This agreement holds the
potential for Lac Knife's future development," said Don Baxter, Focus
Graphite's President and Chief Operating Officer.
"Not only is this offtake agreement the first of its kind in the
graphite industry, it is significant in the fact that it encompasses
the wide spectrum of Lac Knife's offerings in pioneering the sale of
small flake to extra large flake and value added technology
products," Mr. Baxter said.
"This agreement underscores our long-held commercial objective of
competing in the China market," he added.
This agreement was completed in the absence of a Feasibility Study
(currently underway) and there is no certainty the above objectives
will be met.
About Focus Graphite
Focus Graphite Inc. is an emerging mid-tier junior mining development
company, a technology solutions supplier and a business innovator.
Focus is the owner of the Lac Knife graphite deposit located in the
Cote-Nord region of northeastern Quebec. The Lac Knife project hosts
a NI 43-101 compliant Indicated Mineral Resource Estimate(i) of 4.9
million tons grading 15.8% graphitic carbon (Cgr) as crystalline
graphite with an additional Inferred Mineral Resource Estimate(i) of
3.0 million tons grading 15.6% Cgr of crystalline graphite. Focus'
goal is to assume an industry leadership position by becoming a
low-cost producer of technology-grade graphite. On October 29th, 2012
the Company released the results of a Preliminary Economic Assessment
("PEA") of the Lac Knife Project which indicated that the project has
a very good potential to become a graphite producer. As a
technology-oriented enterprise with a view to building long-term,
sustainable shareholder value, Focus also invests in the development
of graphene applications and patents through Grafoid Inc.
The technical information presented in this news release has been
reviewed by Don Baxter Baxter, P.Eng, President and Chief Operating
Officer of Focus Graphite Inc., and a Qualified Person under National
Instrument (NI) 43-101 guidelines.
Forward-Looking Statement
This presentation contains "forward-looking information" within the
meaning of Canadian securities legislation. All information contained
herein that is not clearly historical in nature may constitute
forward-looking information. Generally, such forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved".
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: (i)
volatile stock price; (ii) the general global markets and economic
conditions; (iii) the possibility of write-downs and impairments;
(iv) the risk associated with exploration, development and operations
of mineral deposits; (v) the risk associated with establishing title
to mineral properties and assets; (vi)the risks associated with
entering into joint ventures; (vii) fluctuations in commodity prices;
(viii) the risks associated with uninsurable risks arising during the
course of exploration, development and production; (ix) competition
faced by the resulting issuer in securing experienced personnel and
financing; (x) access to adequate infrastructure to support mining,
processing, development and exploration activities; (xi) the risks
associated with changes in the mining regulatory regime governing the
resulting issuer; (xii) the risks associated with the various
environmental regulations the resulting issuer is subject to; (xiii)
risks related to regulatory and permitting delays; (xiv) risks
related to potential conflicts of interest; (xv) the reliance on key
personnel; (xvi) liquidity risks; (xvii) the risk of potential
dilution through the issue of common shares; (xviii) the Company does
not anticipate declaring dividends in the near term; (xix) the risk
of litigation; and (xx) risk management.
Forward-looking information is based on assumptions management
believes to be reasonable at the time such statements are made,
including but not limited to, continued exploration activities, no
material adverse change in metal prices, exploration and development
plans proceeding in accordance with plans and such plans achieving
their stated expected outcomes, receipt of required regulatory
approvals, and such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained
in the forward-looking information, there may be other factors that
cause results not to be as anticipated, estimated or intended. There
can be no assurance that such forward-looking information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such forward-looking
information. Such forward-looking information has been provided for
the purpose of assisting investors in understanding the Company's
business, operations and exploration plans and may not be appropriate
for other purposes. Accordingly, readers should not place undue
reliance on forward-looking information. Forward-looking information
is made as of the date of this news release, and the Company does not
undertake to update such forward-looking information except in
accordance with applicable securities laws.
Contacts:
Focus Graphite Inc.
Mr. Don Baxter, P.Eng
President and Chief Operating Officer
705-789-9706
dbaxter@focusgraphite.com
www.focusgraphite.com
